Partnership story

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UNDP Partners to Implement a Microfinance System in Mongolia

Summary

In an effort to support poverty reduction and long-term development in Asia, UNDP partnered with fourteen different international groups from the public and private sectors to implement a microfinance system that would enable long-term lending and provide borrowing opportunities for impoverished individual

Two local women’s NGOs were initially selected to participate in the programme. In May 1999, the institution obtained a license to operate as a formal financial institution that has continued to provide lending services to impoverished individuals ever since The almost exclusive focus on individual loans, quality screening and repayment performance enabled XAC (microfinance bank) to attain a reputation of a credible banking operation.